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Browsing Mathematics, Department of by Subject "risk-dominance"

Browsing Mathematics, Department of by Subject "risk-dominance"

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  • Burdzy, Krzysztof; Frankel, David M.; Pauzner, Ady (The Econometric Society, 2001-01)
    We study a coordination game with randomly changing payoffs and small frictions in changing actions. Using only backwards induction, we find that players must coordinate on the risk-dominant equilibrium. More precisely, a ...

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